While the interim government's urgent efforts to attract foreign investment and revitalise the struggling economy, experts advocate for the immediate establishment of a high-powered task force to combat fraudulent real estate developers and land grabbers.

Citing some specific examples of fraud, they say the real estate sector in Bangladesh offers substantial potential for foreign investment, but persistent issues such as fraudulent practices by unscrupulous developers and land grabbers continue to pose significant barriers.

Pakhi, living in Sweden with her family, bought a piece of land in the capital city several years ago. However, one day they were informed that their land had been acquired by a large real estate developer.

When she and her husband contacted the developer, they were offered to sell their plot, which had already been included in the developer's luxury city project. As the offered price was very low, Pakhi and her husband met with officials from regulatory bodies and real estate association leaders in an attempt to reclaim their land, but they were unable to secure justice.

Abdur Rashid, a businessman living in the Middle East, bought a flat on the fourth floor of a building in Uttara developed by a renowned real estate group for around Tk80 lakh. Although the flat was supposed to be handed over in 2014, the construction company began procrastinating.

At one point, Rashid learned that a bank was preparing to auction the entire building because the managing director of the developer company had taken a loan of around Tk7 crore from the bank, using the flats in the building as collateral.

Since the company did not repay the loan, the bank filed a case in the money loan court and received approval to sell the building.

Rashid is just one of hundreds of customers who have been victimised by such scams. Many had to file a writ petition in the High Court to obtain possession of the flats. There are also similar allegations of fraud against many reputable developers in the country.

Like Pakhi and Rashid, many Bangladeshi expatriates are hesitant to invest in Bangladesh, despite real estate being considered one of the best investment portfolios.

“The scope for taking legal action against such fraud in the country is limited. Conventional law imposes restrictions on direct litigation in such cases”, Masud Karim, the husband of Pakhi told THE BANGLADESH EXPRESS.

“Many Bangladeshis living abroad are losing interest in investing in the country's booming real estate sector, as some powerful real estate developers have seized their land and failed to hand over their flats. This is concerning for the government, which relies on foreign direct investment (FDI) to support its economic growth”, he said.

A bright example is Abdul Ahad, an expatriate living in the USA and originally from Nabiganj, Habiganj, who built a house in Sylhet city five years ago at a cost of several crores of taka. Recently, he sold the house for just Tk1.7 crore.

Many other expats in Sylhet are also selling their assets and withdrawing their investment from the country despite different initiatives and incentives from the Sylhet Chamber of Commerce and other business organisations to attract investment.

Bangladesh has a long history of unequal land ownership distribution. A recent study of rural land shows that 69.5% of rural households have lost their land over the past decade, with land grabbing and forced acquisition being the primary contributing factors.

Bangladesh's real estate sector has immense potential, driven by rapid urbanisation, a growing middle class, and ongoing infrastructural developments. However, the sector remains plagued by fraudulent practices by certain developers and the menace of land grabbing, creating significant barriers to foreign investment.

Fraudulent activities in Bangladesh's real estate include selling the same property to multiple buyers, misrepresenting land ownership, and delivering substandard or incomplete projects. Unscrupulous developers often exploit legal loopholes and the lack of enforcement to dupe investors, both local and foreign.

Moreover, land grabbing—illegal occupation or appropriation of land—remains rampant, with influential individuals often colluding with corrupt officials to forge documents and seize properties

Foreign investors rely heavily on legal safeguards and transparency when entering new markets. Reports of widespread fraud and land disputes deter potential investors, as they fear financial losses and prolonged legal battles. The lack of robust regulatory frameworks exacerbates these concerns.

Protracted disputes over land ownership discourage investment, especially from entities unfamiliar with the local legal landscape. Bureaucratic inefficiencies in resolving disputes and enforcing contracts further undermine confidence in the real estate market.

The global reputation of Bangladesh's real estate market suffers due to these fraudulent activities. Even genuine developers face challenges in attracting international funds, as investors perceive the entire sector as risky.

Tackling these challenges through comprehensive legal reforms, enhanced transparency, and more rigorous enforcement can help restore investor confidence, enabling the sector to play a crucial role in driving the country’s economic growth.

A coordinated effort involving the government, industry stakeholders, and international partners is vital to creating a reliable and resilient real estate market.